Bloomberg Tax
Nov. 29, 2022, 9:15 PMUpdated: Nov. 29, 2022, 10:10 PM

IRS Lays Out Labor Rules for Clean Energy Tax Credits (1)

Erin Slowey
Erin Slowey

New IRS and Treasury guidance gives the clean energy industry more details on how developers and investors can meet the prevailing wage and apprenticeship requirements outlined in the tax-and-climate law.

To maximize the amount of some credits in the law, such as the clean hydrogen production credit and renewable energy production tax credit, companies will have to pay a certain wage and employ a specific number of apprentices. Meeting the requirements could increase the credit amount five-fold.

The guidance, the first under the Inflation Reduction Act, clarifies how the prevailing wage is determined, when the labor rules apply and ...